Russian enterprises involved in supplying the military-industrial complex have started moving part of their production processes to China. According to a report by the American research center C4ADS, Moscow is increasing its technological and manufacturing dependence on Beijing amid the ongoing war against Ukraine and harsh Western sanctions. Experts note that this move is aimed at circumventing restrictions and maintaining access to critical components and technologies for the defense sector.
Microelectronics Production Relocation and Intellectual Property Acquisition
One of the key examples of this interaction is the Russian group of companies Element, which specializes in microelectronics for the defense sector and has been under U.S. sanctions since 2022. In 2024, the enterprise began assembling chips directly in China, registering at least four subsidiary structures in the PRC and actively recruiting personnel with knowledge of the Chinese language. In addition, in April 2026, the company acquired intellectual property in power electronics from Chinese defense contractor Shijiazhuang Tonhe Electronics for more than 100 million rubles.
Machine-Tool Projects and Search for New Facilities
Similar steps are being taken by the Stankomashstroy plant, which planned to deploy the production of five-axis machine tools in China's Shaanxi province in cooperation with the local corporation Baoji Machine Tool Group. This high-precision equipment is in demand for creating complex parts, and the Russian enterprise's clients in 2025 included the Votkinsk Plant, which manufactures ballistic missiles, and the Izhevsk Electromechanical Plant Kupol, specializing in air defense systems. At the same time, C4ADS analysts emphasize that the full-scale launch of production has not yet been officially confirmed, although Stankomashstroy owner Oleg Kochetkov has already established a specialized company, Shaanxi Stermasi Technology, in the PRC.
Synergy of Technological Developments and Production Capacities
According to Kommersant, other players are also demonstrating a desire to anchor themselves in China's manufacturing base, notably the United Microelectronics Company, which explored options for acquiring stakes in small Chinese factories. The authors of the C4ADS report point out that such joint initiatives allow both sides to test promising developments, reduce testing costs, and accelerate the transition from design documentation to mass production. Russia offers its partners Soviet-era scientific and engineering foundations, while Beijing possesses advanced facilities and resources for their industrial implementation.
Long-Term Prospects and Risks of Deepening Ties
C4ADS senior analyst Allen Maggard believes that in the long term, the Chinese side may be the main beneficiary of such cooperation, gaining access to unique developments. Henry Zomerfeld from the Center for Strategic and International Studies (CSIS) predicts further expansion of military-technical cooperation in 2027 in the absence of additional sanctions from Washington and Brussels. At the same time, Beijing remains cautious and may limit contacts if they pose a real threat to its economic interests and stable access to Western markets.
